Importance of Inclusive Leadership Styles and Their Impact on Organizational Culture and Diversity Management

This report discusses the importance of leadership in achieving organizational goals and objectives. It analyzes inclusive leadership styles and their impact on organizational culture and diversity management. It also discusses different leadership styles and models, such as authoritarian, participative, delegative, transactional, and transformational leadership. The report also mentions the Vroom expectancy theory and Adam’s equity theory that helps leaders to improve their leadership. The subject of this report is leadership, and it does not mention any specific course code, course name, or college/university.

Leadership

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 1............................................................................................................................................3
Inclusive leadership styles and models.......................................................................................3
TASK 2............................................................................................................................................6
Impact of leadership on organisational culture and diversity management................................6
CONCLUSION ...............................................................................................................................8
REFERENCES:...............................................................................................................................9
Books and Journals:....................................................................................................................9

INTRODUCTION
Leadership is defines as a ability that is used by individual or group of individual for the
purpose of influencing and guiding other followers so that they can achieve their goals and
objectives. In today's business environment, when competition is on the peak then companies
need a good and an effective leadership styles so that they can overcomes with the challenges
(Leslie and et. al., 2017). It is analysed by many theorists such as Peter F Drcker, Faye
Wattleton, etc. that leadership is completing organisation as they do right things whereas
management is doing the things right. So that's why leadership plays a crucial role in the
organisation's success and growth. This can be better understand with the help of analysing the
leadership style of Tesco is undertaken as it is the reason of their success and growth. Tesco is
the UK based organisation that run their organisation from 1919 in UK. Now it becomes a
multinational company that doing very well in the international market. This report will be
discussing different leadership styles that helps organisation to achieve their goals and
objectives.
MAIN BODY
TASK 1
Inclusive leadership styles and models
In today's business environment, the leadership becomes an essential elements for the
success and growth of an organisation. It is identified that every organisation should focus on
their leadership styles so that they can motivate to the people effectively and efficiently.
Leadership is refers to the ability that possess in leaders which they uses to lead in workplace so
that their followers doing that thing which wanted by leaders (Ma and Marion, 2021). Leaders
are the person who doing rights things. That means the chances of mistakes becomes very less.
This is the reason that organisation need to use effective leadership in the company. It is also
found that leaders are the reason of successful business as they always doing those things which
motivating their employees towards achievement of goals and objectives. They are responsible
for increasing the productivity and performances of employees.
According to Faye Wattleton, leadership is vital which can be understand with the
example of ship. Ship can only be safe in the storm due to effective leadership. That means
leadership is the ability that fight with all challenges and overcome with them easily. For that

purpose, inclusive leadership plays an important role where the business leaders have a capacity
to manage a heterogeneous group of people with bias-free nature. This leadership styles is
identified in Tesco. Tesco knows the important of leadership styles and this can through their
success and growth. Some important leadership styles are mentioned below:
Authoritarian Leadership
It is the style that used by an organisation when they need to clear out the goals and
objectives (Khuwaja and et. al., 2020). So they appoint a leader used authoritarian leadership
style that allows a leader to impose their expectation on their employees. It is applicable in those
situations where the leader has the most knowledgeable person in a team. The leader is very
strict in their nature.
Participative Leadership
Participative leadership is an effective leadership style where a group need a leader that
encouraging collaboration. It is the root of democracy. That means it allows people to show their
point of view on a particular topic or subject matter. It is identified that Tesco is the organisation
which is using democratic or participative leadership style. The leaders of Tesco motivate
employees to give their views in the decision making process.
Delegative Leadership
It is also known as laissez-faire leadership where organisation is delegated the roles and
responsibility with powers to the individuals so that they cannot delay in any decision. It is
applicable on those situations where the responsibility of leaders is very high and that's why they
focusing on delegating responsibility with power.
Transactional Leadership
Transactional leadership style is refers to a style in which a leaders is using transaction
between his or her followers and leaders. Transactions includes some reward, punishments, etc.
This is depend on the performances of employees.
Transformational Leadership
Transformational leadership is define as the style that inspires their followers in order to
achieve the organisational goals and objectives (Lan and et. al., 2019). Sometimes, it is identified
that leaders themselves plays a role model in front of their followers so that they can inspires and
motivated.

From the above discussion, it is analysed that it is necessary for an organisation that they
should analyse their situations and then select one leadership style. But it should be inclusive in
which they consider all members equally and bias free way. For the effectiveness of leadership
style, Tesco need to use some leadership models and theories that helps them to improve their
leadership. Some theories that helps leaders to improve their leadership are mentioned below:
Victor Vroom’s expectancy theory
In organisation, it is identified that every person has different kind of nature and that's
why Tesco need inclusive leadership style so that they can manage heterogeneous group. But for
analysing the nature and behaviour of an individual, it is necessary for Tesco that they should use
Vroom expectancy theory (Abalkhail, 2017). Vroom expectancy theory is suggested that a
person acts in a certain way by motivated through a specific person. It is identified that
employees' performance and their goals have a relationship which is not easy to understand. The
performances of employees is depending on some factors that are skills, personality, knowledge,
abilities and experiences. It is necessary for leaders that they should understand these factors so
that they can estimate their performances. The theory suggests that every employees had
different goals and objectives but still they can motivated by believing in following points:
 Positive correlation between performances and efforts.
 Reward is necessary as it satisfy the wants of employees.
 Favourable performance can be convert into desirable reward.
This theory is depend on three beliefs that are explained below:
Valence
The term valence is defined to emotional people that hold for achieving their objectives.
If they are not achieve then leaders need to use some intrinsic and extrinsic rewards in order to
motivate their employees. But it is very necessary for leaders that they should identify the
employees' values.
Expectancy
It is very necessary for organisation that every employees have different level of
confidence and expectations (Madanchian and et. al., 2018). That means their capabilities are
different. It is crucial for leaders that they should discover what training, resources and
supervision required by employees in order to motivate towards organisational objectives.
Instrumentality

The leaders and managers of Tesco should ensure that they fulfilled their promises
because the performance of employees depends on the commitment of organisation.
After analysing the discussion of vroom expectancy theory, it is analysed that employees
need to be motivated by leaders and for that purpose, they should understand the three beliefs of
this theory that are valence, expectancy and instrumentality. It is found that Tesco is the large
organisation and that's why they have number of employees. So they need to improve their
leaders in which Vroom expectancy theory plays a crucial role as it helps in understanding of
employees' expectation that helps leaders to decide their leadership style.
Adam’s equity theory
It is very necessary to ensure by leaders that their employees do not feel any unfair from
the activities of organisation. In this theory, leaders need to balance between employee's input
and output (Fernández-Aráoz, Roscoe and Aramaki, 2017). That means employees' output
should depend on the employees' input. Employees' input includes skill level, hard work,
enthusiasm, etc. whereas employees' output includes salary, recognition, benefits, etc. As per this
theory, the leader of Tesco need to ensure that they should provide all benefits according to the
skills and knowledge of employees. It is very helpful for organisation as they can easily improve
their leadership style which tends to achievement of goals and objectives. It also assist in
motivating employees so that they can improve their performances and productivity level.
TASK 2
Impact of leadership on organisational culture and diversity management
Organisational culture
Organisational culture is made up of group of people where they share their values,
religion, etc. This is necessary for Tesco to use effective leadership styles as it influence
organisational culture. It is found by Tesco that effective leadership style is helping in building a
great organisational culture. Leadership gives a great impact on organisational culture as they are
the person who are responsible for motivating and encouraging people towards achievement of
organisation's goals and objectives (Ruben, De Lisi and Gigliotti, 2018). Tesco is the
organisation that promotes effective leadership style that helps to build organisational culture.
Leadership influences cultures of a company as it shapes organisational culture by interacting to
the employees. The leadership should be effective as if it is not be effective then it will be give a

negative impact on the organisational culture. Below are the following points that reflects how
organisational culture get influence by leadership:
 In Tesco, it is found that they are giving focuses on a culture which reflect the working
style of people. This is necessary for Tesco that their leadership should motivate and
encourage employees so that it will leads to self confidence in employees. It will helps in
making of positive culture of organisation.
 It is also found that people should focus on creative and innovative solutions that helps a
company to take competitive advantage. For that purpose, it is necessary that they have a
culture of innovation in which every person has a focus on their creative thinking. This
can be done by effective leadership where the leaders of organisation are encouraging
their people that they should improve their creative thinking.
Diversity management
Diversity management is becoming the necessity of organisation. Day by day, it is
identifying that Tesco is encouraging diversity in their business practices so that that they can
recruited talented employees in the company (Brimhall, 2019). Diversity is increasing that can be
create problems such as different level of perception of every employee, way of working is
different, disagree between employees, etc. So that's why it is crucial for Tesco to use their
effective leadership styles in order to overcome the challenge of diverse. For the purpose of
diversity, it is necessary for an organisation that they should improve their leadership style as it
give a great impact on diversity management. It is identified that Tesco uses effective leadership
in order to manage the diversity. The reason behind this is leaders are the person who convince
members of organisation in order to accept people and ready for working together. Challenges of
diversity can be manage by organisation if they are focusing on promoting collaboration in their
business practices which can be done with the help of effective leadership style.
It is analysed from the discussion of culture and diversity management that both things
are needed leadership in organisation as it makes them better and all the challenges can be easily
managed by organisation if they use effective leadership style. In this respect, leaders should
make sure that their leadership style needs to be inclusive in which every person is equally
treated by organisations. Inclusive leadership styles needs the skills and qualities in the leaders
so that they can use in the business practices that assists in achievement of organisation
objectives.

CONCLUSION
It is concluded from the above discussion that leadership is the ability that should have in
the business leaders in order to achieve their goals and objectives. This is necessary for an
organisation that they should understand the importance of leadership as it helps in achieving the
goals and objectives. This report discussed inclusive leadership styles which is necessary for
integration of an individual goals with organisational goals. It also discussed the impact of
leadership on organisational culture and diversity. It is analysed that organisational culture
defines the environment of company in which leadership plays a crucial role as it convince
people that they should perform for achieving the objective of organisation.

REFERENCES:
Books and Journals:
Abalkhail, J. M., 2017. Women and leadership: Challenges and opportunities in Saudi higher
education. Career Development International.
Brimhall, K. C., 2019. Inclusion and commitment as key pathways between leadership and
nonprofit performance. Nonprofit Management and Leadership, 30(1), pp.31-49.
Fernández-Aráoz, C., Roscoe, A. and Aramaki, K., 2017. Turning potential into success: The
missing link in leadership development. Harvard Business Review, 95(6), pp.86-93.\
Khuwaja, U., and et. al., 2020. Leadership and employee attitudes: The mediating role of
perception of organizational politics. Cogent Business & Management, 7(1), p.1720066.
Lan, T. S., and et. al., 2019. Influences of transformational leadership, transactional leadership,
and patriarchal leadership on job satisfaction of cram school faculty
members. Sustainability, 11(12), p.3465.
Leslie, K., and et. al., 2017. Women, minorities, and leadership in anesthesiology: take the
pledge.
Ma, X. and Marion, R., 2021. Exploring how instructional leadership affects teacher efficacy: A
multilevel analysis. Educational Management Administration & Leadership, 49(1),
pp.188-207.
Madanchian, M., and et. al., 2018. The impact of ethical leadership on leadership effectiveness
among SMEs in Malaysia. Procedia Manufacturing, 22, pp.968-974.
Ruben, B. D., De Lisi, R. and Gigliotti, R. A., 2018. Academic leadership development
programs: Conceptual foundations, structural and pedagogical components, and
operational considerations. Journal of Leadership Education, 17(3).